InvestorQ : Is Ultratech Cements a good buying idea after the latest results or is it too overpriced at current levels?
sara Kunju made post

Is Ultratech Cements a good buying idea after the latest results or is it too overpriced at current levels?

Answer
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2 years ago
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Let us first dwell on the latest quarter results of UltraTech Cements. Its second quarter profits jumped sharply by 72% to Rs.639 crore in the Sep quarter compared to just tRs.371 crore in the corresponding quarter last year. Its overall revenues for the quarter grew by just about 4.3% at Rs.9254 crore. What was most interesting for the company was that the operating margins, a key metrics for cement companies, improved by 380 bps to 19.6% for the September quarter.

The company has also lined up major expansion plans and it had recently also absorbed the cement division of Century Textiles. In terms of pure P/E ratio, Ultratech is a tad expensive in P/E terms. But Ultratech is the leader in the cement industry by a margin and that gives it the unique advantage. Ultratech is a necessary addition in any portfolio and I would suggest you don’t worry too much about valuations.

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